Why Self-Direction

Flexibility. Control. Opportunity. These are the hallmark features of a self-directed IRA.

Access to a Broad Range of Investments

Although most IRA providers offer only traditional investments such as mutual funds or CDs, the laws governing IRAs allow your tax-deferred IRA assets to be invested in a wide array of investments through a self-directed IRA:

Private equity

Real estate investment trusts (REITs)

Publicly traded stocks

Corporate bonds

Limited liability companies

Private promissory notes

Limited partnerships

Mutual funds

Real Estate

Government securities

Certain precious metals

Mortgage notes

Annuities

Customized to Your Savings Objectives

At Mainstar Trust, the self-directed option is available for any type of IRA: Traditional IRA, Roth IRA, Simplified Employee Pension (SEP), or Inherited IRA. Self-directed IRAs are used by IRA owners to drive a variety of different savings objectives including

Diversification from the traditional stock market

Ability to invest locally, nationally, and globally

Opportunity to capitalize on an investor’s special expertise or invest in special interest projects

Self-directed IRAs do not lose any of the tax and savings benefits commonly associated with IRAs

Tax deductions for most traditional IRA contributions

Tax-free earnings in a Roth IRA

Ability to consolidate retirement savings through rollover from other retirement assets

Bankruptcy protection up to $1.2 million (indexed) for IRA assets and unlimited protection for employer plan rollover assets

Ability to pass IRA assets to heirs without going through probate

Support Considerations

Alternative investments can add complexity to your IRA, with the potential for additional administrative, tax, or legal requirements. Often IRA owners engage a financial advisor to help them evaluate investment opportunities, risks, and costs. Many self-directed IRA owners find it beneficial to consult with tax or legal advisors to navigate the tax rules and avoid prohibited transactions. It is also important to work with a custodian that has proven expertise in administering self-directed IRAs.